Equity Valuation

Enterprise Value to EBIT

Definition

What is Enterprise Value to EBIT?

Enterprise value divided by operating profit before interest and tax.

Example in practice

The ratio compares operating value with EBIT across capital structures.

Keep learning

Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.